In recent years, a lot of business has been done in the gaming industry, with several high-profile studio acquisitions rocking the proverbial boat. Microsoft is on a spending spree, recently culminating in the purchase of Activision Blizzard. Additionally, Sony expanded its roster of studios with the addition of Bungie and Take-Two blocked Zynga, all of which took place in 2022. Now, the Japanese gaming powerhouse Square EnixA , after the sale of several renowned studios, is looking to get in on this action to rebuild its developer roster and intends to buy more studios.
Square Enix’s intent was clarified in its latest year-end earnings report after it was released for public viewing on May 13. A key takeaway from the report was Square’s “Medium-Term Business Strategy Progress”, where the company outlines its plans to achieve its “Medium-Term Earnings Goals”. One way the company says it will do this is by strengthening its “IP ecosystem” by “cultivating robust IP”, opening new game studios and looking at potential acquisitions.
This comes just after Square Enix sold Crystal Dynamics, Eidos-Montreal and Square Enix Montreal to Swedish video game company Embracer Group for $300 million. Along with the studios, Embracer Group has also acquired the Tomb Raider, Deus Ex, Thief, and Legacy of Kain IPs, which include each IP’s full library of games and related DLC.
While some might be surprised that Square Enix wants to rebuild its roster of studios so quickly after the Embracer deal, it’s in line with the gaming giant’s desire to revamp and “reshape” its IP portfolio. An easy way to update this portfolio is to acquire studios with existing IPs, which Square believes fit their vision, as well as grow the overall portfolio.
The positive side, in this case, is that Square managed to sell three of its main North American developers instead of closing said studios, a tactic that is quite common among the biggest game publishers, but that can leave a bad taste in the mouths of users. players. Electronic Arts is one of the best examples of this, as the publisher has developed a reputation for its willingness to shut down high-profile developers like Visceral Games and Pandemic Studios.
Square’s acquisition plans are just one part of this larger outline to achieve its projected financial goals during the current fiscal year. Other plans listed include the appointment of a publishing director to help “accelerate decision-making” to strengthen Square’s “publishing structure”. It also plans to continue promoting blockchain entertainment and NFT efforts through its newly created Blockchain Entertainment Business Division.
MORE: Possible Ubisoft and Square Enix Acquisitions Look So Weird
Source: IGN, Square Enix Financial Report
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